Print ISSN: 2204-1990

Online ISSN: 1323-6903

Keywords : risk management


The Effect of Risk Management on Financial Performance: the case of Commercial Banks of Ethiopia

Gidey Yifer, Dr.NageswaraRao Thadvuai, Dr.AntihaLourdu James

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 5, Pages 1313-1324
DOI: 10.47750/cibg.2021.27.05.091

Risk management has become an important topic for financial institutions, especially
since the business sector of financial services is related to conditions of uncertainty.
The turmoil of the financial industry emphasizes the importance of effective risk
management procedures. The aim of this paper was therefore to identify the impact of risk management and its impact on bankperformance on the Ethiopian banks performance. Balanced fixed effect panelregression was used for the data of seven commercial banks in the sample covered theperiod from 2004 to 2015. Four risk management variables that affect banksperformance were selected and analysed. The results of panel data regressionanalysis showed that operational risk indicator (CIR) had negativeand statistically significant impact on banks performance. Capital adequacy ratiohad positive and statistically significant impact on banks performance. In addition this, the study analysed by descriptive statistical tools and on hypothesis testing using regression model. This leads the researcher to conclude in the last section that banks with good risk management policies have a lower risk and relatively higher return on asset. Finally, liquidity ratio and cost to income ratio are significant key drivers of performance of commercials banks in Ethiopia. Indeed focusing and reengineering the institutions alongside these indicators could enhance the profitability as well as the performance of commercial banks in Ethiopia.

Corporate Hedging Models: A Review

DR MANJULA JAIN

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 3, Pages 651-657
DOI: 10.47750/cibg.2021.27.03.088

This study completes an analysis of the literature reviewed of frameworks that include a sensible hedging of corporations and also discusses the issues of corporate finance, including funding and acquisition. Hedging is either a related insurance policy or an associated operation to reduce the association between the cost and the random variable associated with the selling of by-products. It has been inferred that the hedge company lowers several costs such as trouble value, organization valuation and the cost of leverage while considering the fashionable financial theories once calmly developed by Miller and Modigliani (M-M). In addition, the area unit of hedging designs clarified the detrimental option reduction. The mostly focused models of the related integrative manner are also gifts in the review process. Organizational risk management is one of the most important questions for managers and clients. The risks management of the firm mostly relies on hedging by retaining futures or making policies to reduce unnecessary damage as a result of negative movements of the underlying properties. Throughout this study the analysis concentrates on risk-neutral non-financial companies only. It summarizes diverse theoretical and analytical studies which have economic basis for non-financial companies' hedger operation in the financial system.

Strengthen roles of commercial banks in vietnam economy– a case of eximbank

NGUYEN THI TUYEN NGON; DINH TRAN NGOC HUY; TRAN DUC THANG

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 972-975
DOI: 10.47750/cibg.2021.27.02.114

Is it the time for us to evaluate roles of Vietnam commercial banks and importance of risk management activities? This paper uses both quantitative analysis with statistical data and charts, combined with qualitative analysis including synthesis, inductive and explanatory methods in order to estimate and compare market risk via beta CAPM of Eximbank (EIB) and Asia Commercial Bank (ACB), 2 big listed joint stock banks in Vietnam. Research findings show us that market risk of Eximbank is higher and increase during post-low (L) inflation stage, compared to pre-L inflation time. Results may be used for policy implications and research models can be references for other countries including emerging markets.

Enhancing financial risk managment in corporation – a case of some vietnam listed banks

TRAN DUC THANG; DINH TRAN NGOC HUY; NGUYEN THI THU HA; DUONG THI TINH; NGUYEN THI TUYEN NGON

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 976-980
DOI: 10.47750/cibg.2021.27.02.115

Saigon Hanoi bank (SHB) and Sacombank (STB) are two big listed banks who opened lots of branches and hold big market shares in Vietnam. This paper use quantitative and quantitative methods in order to estimate risks of these two banks and make comparison. Study findings show that market risk, beta CAPM of SHB bank higher than those of STB bank during pre-low (L) inflation stage, but lower during post low inflation time. Based on above results we can propose risk policies for banks, bank system, State bank and relevant agencies.

Business Model Canvas Effect Risk Management and Business Performance: SMEs in Rayong, Thailand

CHUTIMANT BOONNUAL; THITIRAT THAWORNSUJARITKUL

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 1542-1555
DOI: 10.47750/cibg.2021.27.02.165

This research studied the relationship of business operations based on business elements of
Business Model Canvas that influenced the efficiency in risk management and the performance
of SMEs in Rayong province. The research is based on a Quantitative research methodology,
where data collection has been achieved through self- administered questionnaires. The statistical
results found that the Business Model Canvas influenced SMEs performance in Rayong.The
empirical data and correlation testing via Structure Equation Modeling in which found thatSMEs
businesses in Rayong had well business plan that covered all the nine aspects of Business Model
Canvas with the efficient risk management.Both led to the well Balance Scorecard performance
including the well business plan that would lead the business to have good risk management
efficiency. The risk management efficiency was the partial mediation from the Business Model
Canvas to the business performance result.